By Finkle, Victoria
American Banker , Vol. 177, No. 142
Byline: Victoria Finkle
WASHINGTON a Rep. Jeb Hensarling, one of the top candidates to assume control of the House Financial Services Committee next year, sharply criticized the Dodd-Frank Act, saying it had severely damaged financial institutions.
Speaking to the National Association of Federal Credit Unions' annual Congressional caucus, Hensarling also blasted the creation of the Consumer Financial Protection Bureau, arguing it has too much unchecked authority.
"I do believe that, regrettably, you have been victimized by a legislative drive-by shooting known as Dodd-Frank," Hensarling said, to industry applause.
The Texas Republican critiqued President Obama's optimistic outlook when the law was passed in 2010.
"The President said when Dodd-Frank was passed that it would 'lift our economy,' 'give certainty to everybody' and 'end taxpayer bailouts,'" Hensarling said. "Two years later we remain mired in the worst economy since the Great Depression, Too Big To Fail is enshrined into law," and capital markets must still contend with "Dodd Frank's confusing, complex and voluminous rules."
He added that part of the problem was an unnecessary focus on regulation to fix the country's problems.
"If you have the wrong diagnosis, you tend to get the wrong remedy and that is what we seen in Dodd-Frank," Hensarling said. …